Ethereum is undergoing a significant shift in derivatives positioning as high-leverage long positions decline sharply across the market. The reduction suggests that many overly aggressive bullish trades have either been closed voluntarily or forced out through recent liquidation events.
Crypto investor and data analyst known as CW on X noted that Ethereum is experiencing a notable deleveraging phase. While long positions have fallen, short positions have increased slightly, indicating the market is not yet heavily crowded on the bearish side.